1000 new jobs for QLD on proposed Blue Gum Gas Project

Carbon Energy has moved one step closer to obtaining approval to develop its first commercial scale gas project in Queensland at a site west of Dalby.

The company has received confirmation from the Department of Environment and Heritage Protection (DEHP) that the government-appointed external consultant has completed its review of Carbon Energy’s Decommissioning Report and Rehabilitation Plan.

The company understands that a decision by government is now only subject to consideration of the final reports from DEHP and the Department of Natural Resources and Mines (DNRM) which are expected to be submitted early this year.

Carbon Energy CEO and Managing Director Morné Engelbrecht said the company was poised to move ahead with commercialising the project, as soon as the government had fully considered the departmental recommendations.

The Blue Gum project is set to be developed on the Bloodwood Creek pilot site, where the company completed first trials to commercialise its Underground Coal Gasification (UCG) keyseam technology.

This project is intended to deliver 25PJ per annum of pipeline quality natural gas from a plant that converts the UCG process’ Syngas to pipeline quality gas.

It is anticipated that first gas could be supplied to local industry from 2017, once suitable investment partners have been found and State Government approvals have been received.

Based on projected gas prices, the Blue Gum Gas Project could deliver in excess of $4 billion in gross revenue to Carbon Energy over a 25 year period and could create more than $200 million in royalties for the State.

It is expected to create in excess of 1000 jobs during the construction phase and approximately 150 sustained direct jobs in the region over the 25 years.

Mr Engelbrecht said the demonstrated and scientifically assessed Bloodwood Creek trial results provided strong confidence in the company’s technology through its complete lifecycle, from initiation to rehabilitation.

”While the Queensland Government considers the departmental recommendations, the company will increase its attention on securing further licensing opportunities globally, armed with the data supporting the outcomes from the Bloodwood Creek trial,” he added.

“As we await a final decision from government, we will be directing our resources toward both securing off-take and development partners for our Blue Gum Gas Project and advancing our international business development program.

“The environmental results that we have achieved from the Bloodwood Creek trial provide us with a powerful demonstration of the advanced and leading nature of our gas production technique,” Mr Engelbrecht said